THIRUVANANTHAPURAM: The state government asked the Centre to issue strict direction to banks to not seek guarantee for loans of up to Rs 1.5 lakh under the credit link projects and Kisan credit loans from farmers. Agriculture Minister P Prasad raised the issue at the meeting convened by Union Agriculture Minister Narendra Singh Tomar on Thursday.
Credit guarantee coverage should be made available during the formation of farmer producer companies. These companies should be given loan at one per cent interest when Nabard provides loans to Primary Agriculture Cooperative Bodies.
The interest subsidy announced for the primary agricultural product processing units should be extended to the units involved in the manufacture of value-added products. The oil seed production scheme should also be extended to all the districts. The state also sought Central assistance to set up a quality assessment lab. Export sops should be announced for companies working in SEZs in the wake of Covid.